A new Save To Buy scheme has been launched for first-time buyers. This scheme will help first-time buyers as it will allow the rent they paid to be saved towards their deposit instead. This scheme is currently available in London and Essex. This blog will discuss the new Save To Buy scheme, how it works and who can use the scheme.
How does the Save To Buy scheme work?
If you would like to purchase one of the Save To Buy properties, you would need to have already saved a deposit which is equivalent to 1% of the property’s value. Buyers would then have to pay a fixed rent each month based on their own finances and average local rents, with 100% of the money going towards their deposit.
Buyers would be given 6-12 months to save their deposit. The Save To Buy scheme also runs for up to 2 years which can be helpful for buyers who require more time to save their deposit. Buyers are also given the option to top up their monthly payments to reach their goal sooner.
Buyers will then be expected to complete and submit their mortgage application to a lender to purchase the property. This application should be completed when the buyers are within one month of having saved the required deposit.
Who can use the Save To Buy scheme?
The scheme was introduced to support individuals who are struggling to buy a home immediately. There are a few requirements to be eligible for the Save To Buy scheme. You must be:
You will also need to complete an assessment with a financial advisor. They will set out the income and deposit that is required.
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